The Market Revolution and the American System, Essay Example

America strived for self-reliance and prosperity from the very beginning. The country’s political leaders were there to guide it as the country struggled to overcome the challenges of being a newly-independent nation. There was no lack of opportunities in America but it was up to the political leadership to create conditions necessary for economic growth. The years from the late 1790’s to early 1810’s were specifically significant ¹ as America experimented with capitalism and started discovering the benefits of mass production and competitive economic market structure.

The industrial revolution made it possible to produce goods on a massive scale and significantly expand the market for goods beyond the local markets. These gains in productivity as well as market opportunities led to revolutions in logistical support so that the raw materials could be shipped to the production facilities from anywhere and finished goods could be delivered to the customers cheaply and in a timely fashion ². Politicians created policies to encourage international trade and unrestricted flow of exports and imports and steps were taken to support high land prices which would generate revenue for the Federal Reserve.

No economic growth is possible without a strong infrastructure to support it and the high levels of economic activity also led to increased demand for roads, canals and railroads. This enhanced transportation and communication infrastructure helped connect the fragmented markets all over the country and increased the flow of goods and service among them.

Thus, the industrial revolution played a huge role in transforming the quality and reaches of national infrastructure network and helped producers expand the markets for their goods. The improved infrastructure also lowered transportation times and costs and made American businesses more competitive and efficient.

Endnotes

American System. (2012) Retrieved from http://www.u-s-history.com/pages/h278.html

Miller D., and Masur L. (2012) The rise of capitalism/the invisible hand. Retrieved from http://www.learner.org/biographyofamerica/prog07/transcript/page03.html